The Basel Committee on Banking Supervision has released its minimum requirements for all classes of capital instruments to ensure they can fully absorb losses “at the point of non-viability before taxpayers are exposed to loss.” The committee said that the guidelines, which have been endorsed by its group of governors and heads of supervision, are in addition to those criteria published by Basel last month. The committee advised that for an instrument issued by a bank to be considered so-called additional Tier 1 or Tier 2 capital, it must meet or exceed the minimum requirements.
Click here to read the release from the Bank for International Settlements.